Equitisation plan for Song Da Corporation gets approval

Hanoi (VNA) - The Prime Minister has given the green light to the equitisation plan for Song Da Corporation in the form of selling parts of state-owned capital and issuing shares to increase charter capital to 4.5 trillion VND (198.3 million USD).

The plan allows the business to launch its initial public offering (IPO) of 450 million shares for 10,000 VND each or 0.44 USD, with the State retaining 229.5 million shares, making up of 51 percent of the charter capital, until the end of 2019.

State capital in the corporation will be reduced to below 50 percent of the total charter capital in 2020.

Meanwhile, 822,000 preferential shares or 0.183 percent of the charter capital will be sold to the company’s staff and 135 million shares equivalent to 30 percent of the charter capital to strategic investors. Over 84.7 million shares will be put up for public auction.

The Prime Minister authorised the Ministry of Construction to set up criteria to choose strategic investors and asked Song Da Corporation to handle land issues, pay annual land lease frees and implement the management and use of land in line with relevant regulations.

The company’s total labourers at the time of announcing the corporation’s value was 464 people, 412 of whom will move to work at Song Da Corporation-Joint Stock Company and the remainder will leave the company.

Some 55 state-owned companies were equitised in 2016. The country targeted to equitise 137 state-owned enterprises in four ministries and branches, 32 localities and four economic groups will be priotised during 2017-2020.-VNA